Sales = Management Scapegoat

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  Mrdoug01/29/08 Report as spam
  1

  Sales = Management Scapegoat

  Several years ago, my wife was a national sales manager for an international biotechnology company. For 5 consecutive quarters she met her sales quota, 100% growth - in a mature industry. For the sixth quarter, her company raised the quota to 300% growth or no bonus. Within a few months, she left.

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  jwilsford01/29/08 Report as spam
  2

  RE: Sales = Management Scapegoat

  Amen! I have found in my career when things don't go well look to how everyone is being compentsated. It quickly becomes apparent we only do what we are paid for...if the compensation is paid for doing nothing, we will do nothing. As the operations, engineers, finance, and other groups complain about sales and their golf, wine and dine, travel to exotic places (the hotels and offices we visit; after all, who has time to visit museums, etc.)late nights airports etc., they fail to realize the reality of sales is that you perform or die! We are always the first to go to the chopping block. Sales are down, get new people.

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  davidhensel01/29/08 Report as spam
  3

  RE: Sales = Management Scapegoat

  You're right on target!
  
  
  I've ALWAYS felt that when the marketing is ineffective, it's marketing's fault.
  When the product isn't living up to expectations, it's production's fault (or
  design, engineering, development, etc.). When corporate financial strategy isn't
  paying dividends, it's the fault of finance. And when sales isn't producing for the
  company, it's got to be the fault of...management. Amen!

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  nash1679@...01/29/08 Report as spam
  4

  Amen

  Amen! And I mean it

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  ptiseo01/30/08 Report as spam
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  Better Yet!

  More frustrating is how Sales always gets a bum wrap and always gets picked on, as opposed to those good-for-nothing, we-could-do-it-better, lazy and stupid engineers, marketeers, and managers. They just don't understand the stress we live! I wish I had their easy life.
  
  (Yes, I am actually piggybacking on your sarcasm. )

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  boydroge01/29/08 Report as spam
  6

  RE: Sales = Management Scapegoat

  You're bang on with this & too many companies focus their incentives on the end result instead of what drives the desired result & then complain about wrong behaviours to get there. Example in an FMCG business a large majority of sales are determined by shelf space, eye level of high margin sku's, correct pricing, promotions being in place on time, no out of stocks & stock quality. Get this right (assumes a good product / concept) then sales should follow. However, if you give the sales team an incentive on revenue they will focus on back room relationships, dropping price, getting volume, which half the time sits in the supermarkets warehouse. Problem is when you have a situation like that that has been hanging around for years no one has the balls to change things because of what will come out of the woodwork (i.e. try not selling anything for 3 months). Mind you, some sales people who know their job will focus in on the drivers of sales & some will just drop their pants to get to the goal. Faced with the same goal you can get some executing to achieve & some just achieving without execution so it seems to me that the blame should be in both camps...

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  nash1679@...01/29/08 Report as spam
  7

  RE: Sales = Management Scapegoat

  When I first went to my business school, I had a dream to work in sales as I like to communicate with people. But throughout the time of my graduation I have found how the sales people treated in an organization. The other department's officers envy them as the sometimes draw 4 to 5 times comission than those officers' salary. As a result when the management gets a chance to use against the sales team, their jealousy give them the boost to sack them. Now I am planning to be a business consultant.

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  mfleck6401/29/08 Report as spam
  8

  The Law of Unintended consequences

  Always applies. You are spot on. Sales people do what they are paid to do. Unlike the post above implying that your blaming management for Sales lack of performance, what we are talking about is balming management for creating a plan and not thinking it through. And then, when the consequences hit, it is the fault of the sales group who did EXACTLY what they were incented to do. Bottom line is, in my plan, I will always find the best way to make the next incremental dollar. It is up to management to make sure that is aligned with corporate goals.

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  michaelperla@...02/10/08 Report as spam
  9

  Check and Balances

  I agree w/ the point of the article. It's often used in a negative way, but many sales people are "coin operated." And you want them to be (I am). If management doesn't begin w/ the end in mind and think about the behaviors that drive those ends, they get what they deserve. If sales reps are paid on revenue, and most are, the sales manager typically has some sort of profit or contribution margin piece to their bonus or variable - there needs to be a check and balance to ensure that "good" business is being sold. You can also put in a "kicker" to the sales reps to sell margin-rich offerings ... at the end of the day, sales reps will do that they are paid on, what they are measured on, and what their boss tells them to do ... hopefully, those things are all aligned. Many times they are not.